Digitalization as a Tool for Risk Management in the Agricultural Sector
Digitalization as a Tool for Risk Management in the Agricultural Sector

Author(s): Hristina Harizanova-Bartos
Subject(s): Social Sciences, Economy, Business Economy / Management, Agriculture, Sociology, Evaluation research, ICT Information and Communications Technologies
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: agriculture; risk; digitalization; management
Summary/Abstract: Risk management is an integral part of the management process of any organization, including in the agricultural sector. The increasing adoption of digital technologies is becoming an essential part of the sector's activities. The aim of this publication is to analyze the opportunities for risk management in the agricultural sector through the introduction of digital activities at both macro and micro levels. Digitalization in agriculture is crucial for managing risks and reducing the negative impact of agricultural activities. It can improve primary production, supply chain, logistics performance, and reduce food losses and waste. However, digitalization may pose risks due to significant investment in digital solutions and lags behind other sectors. Traditional methods often fail to reduce risks, but digital technologies can transform communication channels, build infrastructure, and reduce errors in data entry. By implementing risk management strategies, farmers can obtain more benefits and free up resources for other sectors. At the micro level, new technologies, access to digital markets, and improved risk management are being implemented at the individual farm level, thereby contributing to the sustainable development of the agricultural sector. The publication includes the following main tasks: 1) a theoretical review of the key risks in the agricultural sector; 2) an analysis of micro and macro risks in the sector that can be managed through digital technologies; and 3) key findings and conclusions. The publication draws its information from both – theoretical sources and agricultural sector research.

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